June 3, 2025

bond prices and interest rates

Funds

Falling interest rates may lift debt and hybrid funds but not without risks

Normally, both debt funds and conservative hybrid funds are poised to benefit mainly due to the inverse relationship between interest rates and bond prices. Debt funds invest mainly in bonds and other fixed-income securities, and benefit when interest rates go down. As rates fall, the prices of existing bonds rise because these bonds offer higher

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